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Finding 2020-006 Internal Control over Reporting Information on Federal Programs: Criteria: In accordance with 2 CFR §200.512(a), the auditee must submit the reporting package for the Single Audit to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period. Condition: The Center experienced delays in the preparation and issuance of its financial statements for the year ended December 31, 2020. As a result, the related Single Audit required under Uniform Guidance was not completed and submitted to the Federal Audit Clearinghouse within the required timeframe, resulting in a late submission. Section III – Federal Awards Findings and Questioned Costs (Continued) A. Current Year Findings and Questioned Costs – Major Federal Award Program Audit (Continued) Finding 2020-006 Internal Control over Reporting (Continued) Cause: The delays were primarily attributable to operational and administrative disruptions related to the COVID-19 pandemic, including staffing constraints, increased workload associated with pandemic response activities, and delays in the availability of financial information necessary to complete the audit in a timely manner. The delay was also due to untimely preparation of financial statements and challenges in assembling complete and accurate information necessary to finalize the audit in a timely manner. Effect or Potential Effect: Failure to submit the Single Audit reporting package within the required timeframe may result in noncompliance with Uniform Guidance and could subject the Center to potential sanctions from federal awarding agencies, including increased oversight or restrictions on future federal funding. Questioned Costs: None. Recommendations: We recommend that the Center strengthen its processes to ensure timely completion and submission of its annual financial statements and Single Audit by: • Establishing and monitoring formal internal timelines for financial statement preparation, audit completion, and submission of the Single Audit reporting package in accordance with Uniform Guidance. • Assigning clear responsibility for overseeing audit readiness and compliance with reporting deadlines, including ongoing coordination with external auditors. • Enhancing audit preparedness and contingency planning, including timely reconciliation of significant accounts and identifying backup resources to address unexpected operational disruptions. View of Responsible Officials: Management understands and agrees with the finding and the delay in submission of the Single Audit reporting package. Corrective actions include: • Establishing formal internal timelines and milestones for financial statement preparation, audit completion, and submission to the Federal Audit Clearinghouse. • Assigning clear responsibility for audit readiness and coordination with external auditors. • Enhancing audit preparation processes, including timely reconciliation of key accounts and early compilation of required schedules. • Developing contingency plans and cross-training staff to mitigate delays due to unexpected disruptions.